<p>The reality of making a multi-thousand dollar payment twice yearly just struck me--when I was in school each term's costs were still measured in hundreds not thousands! Is there an easy way (link, list in existence??) to identify colleges (esp LACs) that offer payment plans that allow incremental payments over 8-12 mos per year rather than semi-annual payments? It seems each school buries this information in a different place, if it exists at all, in their respective websites, and I have yet to find such information in the various college review books.</p>
<p>bookmom, my son's college uses Tuition Management Systems. You can see if your school is listed by checking this website.
<a href="https://www.afford.com/index.aspx?di=nkyaud552eh3en45fr1xat55%5B/url%5D">https://www.afford.com/index.aspx?di=nkyaud552eh3en45fr1xat55</a></p>
<p>It's relatively painless to go on line and set up a 10 or 12 month automatic transfer from your bank account to the college. [Actually getting the money into your account is the painful part. :)]</p>
<p>We do 9 monthly payments, automatically from our mileage acruing credit card. That adds up to about one free airline ticket a year!</p>
<p>We WISH we could use a mileage credit card, but our tuition pay and college do NOT allow payment by credit card! Here's another idea...if your child's college does not have a tuition pay plan (although I suspect many or most do at this point), you could take out a home equity line of credit and pay it off in 10 months. The difference is that the tuition pay plans have a yearly fee (about $60) and the home equity would have interest (depends on the amount of the loan). We know folks who did the home equity loan every year because their universities did not have a tuition payment plan.</p>
<p>University of Chicago had a nice 10-payment plan when my son attended a few years ago. You feel so relieved to have those 2 months off that you scarcely think about the total, which is pretty awe-inspiring alright.</p>
<p>If I recall correctly, Tuition Management Systems handled this and it was very smooth, and we felt worth the small fee.</p>
<p>We used the tuition payment plan recommended by our LAC, Key Education Resources, based in Boston, MA. It even produced a pamphlet specifically designed for the LAC. There was an application fee of $40. Payments began in June (though you could begin paying in August, and include back payments for June and July) and stopped in March. We used a direct debit, so everything went very smoothly.</p>
<p>Don't most of the 10-month payment plans have you make your first payment in July, and last one in April, so technically, you are paying them a little earlier than you need to.</p>
<p>Yes, that's right. But we actually did not sign up until July so we backpaid the June and July bills at the same time as we paid the August one. There was no penalty involved. We only just got the tuition bill for S2 on July 15, due Aug. 1.</p>
<p>The timelines vary on which months you pay. We pay beginning in May and have March and April "off" (so we can save to begin paying in May...). Some folks I know begin in June, but their plans do not have a payment in December (I wish we had that one...)so they end in April. It varies depending on the payment plan company and the college. It seems like you are paying them in advance...BUT keep in mind that your student's fees are supposed to be paid before the semester begins. So even beginning payment in May...we are just right by having four months of payments completed before classes for the fall quarter begin. We are actually in paying LATER for the spring semester which begins in January...we aren't done paying for THAT one until February.</p>
<p>We never liked the idea of paying earlier, even though it's also stretched out later in the spring. We prefer to bite the bullet with the two lump sums and try not to think about it the rest of the year! :)</p>
<p>I like to pay, and enjoy every minute of it. It is a very happy day indeed when, twice a year, I go over to the bank and get a check made out to the College, and lick the stamp, and put the envelope in the mail. I sing the rest of the day!</p>
<p>Some are not so fortunate.</p>
<p>Almost all of them have a payment plan administered by TMS or other servicer. The college actually prefers that you use the servicer rather than pay direct, in my experience.</p>
<p>They'll find you; you won't have to go looking for them.</p>
<p>Roscoe's comment that they'll find you is dead on, in my experience. I just shuffled through a stack of loan and payment plan offers to see if any of them made sense for our financial situation. Nope, but it was nice to see them.</p>
<p>Momrath, thanks for the link--I found most of the schools to which D will apply are part of this.</p>
<p>I was critical of Tuition Management Systems in an earlier thread, but I have to admit the problem was all a misunderstanding on my side. So far at least, it works as advertised and we're glad we're making monthly payments.</p>
<p>My wife was hoping to be able to pay by credit card and acrue points, too, but no luck. Our school doesn't allow it either.</p>
<p>D's LAC offers a 10 month plan through Academic Management Services. There is a $50 fee and an additional fee if you use a credit card. 1500 schools use their plan. </p>
<p>D's school also offers protection from tuition increases by paying several years upfront of today's comprehensive fees. But given your original question, I'm sure that's not a pleasant thought. :eek:</p>
<p>Keep in mind that you DO pay a price for the convenience:</p>
<ul>
<li>the setup fee </li>
<li>the lost interest from having to make payments early.</li>
</ul>
<p>The companies that offer this service are not doing it to be nice. They do it to make money. They make most of their money off the fee, but some off the float.</p>
<p>If it is worth the small fee for the convenience, and you can handle having over half the fees paid before the due date, then go for it. But it is not a free lunch.</p>
<p>The plans are convenient; howver, you cannot use them if you are paying from a 529 acccount. The payments are made to a private company such as TMS, but to get the tax breaks of paying from a 529 account, the payements must be made directly to the school.</p>
<p>*Keep in mind that you DO pay a price for the convenience:</p>
<ul>
<li>the setup fee </li>
<li>the lost interest from having to make payments early.*</li>
</ul>
<p>We found that our first payment wasn't that much early particularly compared to paying the whole amount a month later. The set up fee seems modest compared to the increased convenience. YMMV</p>
<p>Oh mini!! You make me laugh!</p>